MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

March 20, 2008 08:16 ET

MagIndustries Prices MagMinerals Offering

TORONTO, ONTARIO--(Marketwire - March 20, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

MagIndustries Corp. ("MagIndustries" or the "Company")(TSX VENTURE:MAA) is pleased to announce that, with a syndicate of agents co-led by Cormark Securities Inc. and Paradigm Capital Inc. and including Desjardins Securities Inc., Jennings Capital Inc. and Ambrian Securities plc (the "Agents"), it has priced its previously announced best efforts private placement offering (the "Offering") of securities in the capital of MagMinerals Corp. ("MagMinerals"). The securities have been priced at Cdn$4.00 each for a base deal of $80,000,000 in gross proceeds. Following the closing of the base deal, MagIndustries will hold an approximate 83.3% interest in MagMinerals. In addition, the Company has granted the Agents an option to increase the size of the Offering prior to the closing of the base deal by up to $20,000,000 at the same price.

The net proceeds of the Offering will be used by MagMinerals to fund the repayment of approximately EUR 15 million in project related debt with the remaining funds to be applied to the construction of Phase I of the Company's potash project near Mengo in the Kouilou province of the Republic of the Congo as well as the completion of a feasibility study update for Phase II of the project. The Agents will receive a cash commission of 5.0% of the gross proceeds of the Offering.

Subsequent to the Offering, the Company intends to cause MagMinerals to become a reporting issuer in one or more provinces of Canada through an initial public offering, reverse take-over or similar transaction.

The Offering is expected to close April 3, 2008 and will be subject to the receipt of all necessary regulatory approvals.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About MagIndustries Corp.

MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX-V Exchange and trades in Canadian currency under the symbol "MAA". The Company has 195,169,016 shares outstanding on an undiluted basis. MagIndustries' wholly owned resource subsidiaries are operating and developing major industrial projects in the Republic of Congo (ROC) and the Democratic Republic of Congo (DRC).

Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions, and other risks detailed from time-to-time in the Company's ongoing filings. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.

Cusip: 55917T 102

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • MagIndustries Corp.
    Rich Morrow, Director of Corporate Development
    Director of Investor Relations
    (416) 368-7911 or Cell: (416) 258-0829
    (416) 368-5048 (FAX)
    Website: www.magindustries.com